Buying a property in one of the hundreds of housing<\/a> estates across Australia is a no-brainer for many families.<\/strong><\/p>\n In most cases the land or package is comparatively cheap, allowing them to purchase a home that is significantly larger than anything they could buy close to the city, and for a fraction of the cost.<\/p>\n But with so many estates dotting the landscape, how do you identify the ones that offer<\/a> good value, as well as excellent potential for growth?<\/p>\n Here\u2019s what to look for in a high-performing estate area.<\/p>\n Buying a property in a housing estate is a no-brainer for many families. Picture: Getty<\/p>\n<\/div>\n It comes as no surprise that many of the best-performing estate areas already have good access to shops, schools and other amenities.<\/p>\n Any advantage in buying a great home in a new estate could quickly be eroded if it takes years for the surrounding infrastructure to catch up.<\/p>\n Parley Property Advisory\u2019s Luke Assigal warns that you should ensure that planned infrastructure projects have already started or have iron clad timelines for when construction will begin.<\/p>\n \u201cYou find a lot of places at the moment, they said they\u2019d have a train station five years ago, and they still haven\u2019t got one,\u201d he says.<\/p>\n \u201cIn those areas, when they build, you tend to find it\u2019s like the chicken comes before the egg. You\u2019ve got all these houses<\/a> and you\u2019ve got no train station, no shopping centre. You\u2019ve got to drive 20 minutes to get to anything, which doesn\u2019t seem like much, but with the convenience other areas have, it\u2019s a lot.\u201d<\/p>\n The importance of buying near infrastructure:<\/strong><\/em><\/p>\n The cost of building, and subsequently demand and price growth, can be affected significantly by the land itself, according to Max Brown agent Tony Smith.<\/p>\n Smith says estates that are relatively flat or gently sloped, like some currently for sale in Melbourne\u2019s outer south-east, always have greater appeal.<\/p>\n \u201cThe land out there is all really nice. It\u2019s all gently sloping, which doesn\u2019t sound very interesting, but when you go to other areas where you\u2019ve got slope, it can add $40,000 or $50,000 to someone\u2019s house costs,\u201d he says.<\/p>\n \u201cPeople are focusing on affordability, so if they can buy a block for $300,000 and build a house for $200,000, they\u2019re getting themselves a new home for $500,000. But if the area\u2019s got slope and it jumps the price to $540,000, that knocks them out.\u201d<\/p>\n Finding an estate area with an in-built network of demand is one of the hidden keys to performance and growth.<\/p>\n And Smith says targeting regions with a strong representation from certain cultural demographics can yield big results down the track.<\/p>\n He highlights one such Melbourne region, with a booming Indian population, as an example, saying land prices in one estate have soared from an average of $250,000 a year ago to $350,000 now, due largely to that acute demand.<\/p>\n \u201cIt\u2019s been embraced by the Indian community, and that\u2019s the number one reason. They\u2019re moving down there because their community\u2019s down there,\u201d he says.<\/p>\n \u201cIt\u2019s a big pull for people. And then what happens is everything in that area starts to adjust to that \u2013 the style of schools and shops and restaurants.\u201d<\/p>\n Finding an estate area with a cultural network is one of the hidden keys to performance and growth. Picture: Getty<\/p>\n<\/div>\n It\u2019s generally the case that most of the newer housing estates are some distance from the CBD. That\u2019s where all the available land is, after all.<\/p>\n But find one that\u2019s a little closer in and you could strike gold.<\/p>\n Smith says one growth area in Melbourne\u2019s north-east has experienced price increases of 50% in a very short period of time, purely because it\u2019s much closer to the city than others of comparable scale.<\/p>\n \u201cWe started off selling at $200,000, now we\u2019re at about $300,000,\u201d he says.<\/p>\n \u201cIt\u2019s had more growth than anywhere because it\u2019s 35km from the city, whereas other areas are 55km from the city, and it\u2019s still cheaper than those areas.\u201d<\/p>\n See Australia\u2019s top 10 growth suburbs<\/strong><\/em><\/p>\n Nothing will kill good growth quicker than an oversupply of properties in one area.<\/p>\n Finding a housing estate that is well priced but has a touch of scarcity is a good start, so be sure to investigate the surrounding area, to ensure other developers aren\u2019t about to pour hundreds more properties or lots onto the market just minutes down the road.<\/p>\n \u201cYou don\u2019t know that a developer has just bought or is subdividing about 200 lots in that area, and that\u2019s going to flood the market,\u201d Assigal says.<\/p>\n \u201cYou look at the areas that are going crazy at the moment, there\u2019s so much demand and not enough supply, and they\u2019re the areas where people will be happy to pay over the market.\u201d<\/p>\n
\n <\/p><\/div>\n Realestate au <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"![\"housing](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/wp-content\/uploads\/2017\/10\/11121841\/housing-estates_2000x1500.jpg?resize=2000%2C1500&ssl=1\")
<\/p>\nAccess to amenities<\/h2>\n
Land quality<\/h2>\n
Cultural lure<\/h2>\n
![\"multicultural](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/wp-content\/uploads\/2017\/10\/11123623\/multicultural_2000x1500.jpg?resize=2000%2C1500&ssl=1\")
<\/p>\nProximity to CBD<\/h2>\n
Supply just right<\/h2>\n